Adobe to acquire Magento for $2.2 billion
Adobe on Monday announced an agreement to buy leading e-commerce software provider, Magento Commerce, for US$1.68 billion (A$2.22 billion).
The deal, which is subject to regulatory approval and customary purchase price adjustments, marks the US software giant’s first foray into e-commerce, as it introduces transaction features into the CMS platform, Adobe Experience Cloud.
In a statement, Adobe explained that consumers and businesses today expect every interaction to be shoppable – whether on the web, mobile, social, in-product or in-store. The acquisition of Magento goes a way towards enabling that.
“Adobe is the only company with leadership in content creation, marketing, advertising, analytics and now commerce – enabling real-time experiences across the entire customer journey,” Brad Rencher, Adobe’s executive vice president and general manager of digital experience, said.
“Embedding commerce into the Adobe Experience Cloud with Magento enables Adobe to make every moment personal and every experience shoppable.”
Thousands of developers and plug-ins
Launched in 2008, Magento provides digital commerce, order management and predictive intelligence capabilities for businesses in a range of industries, including retail, wholesale, manufacturing, consumer packaged goods and the public sector.
Magento currently provides two distinct e-commerce platforms, an open-source platform for basic capabilities, and Magento commerce, a platform-as-a-service that provides more robust capabilities.
The platforms are supported by a community of more than 300,000 developers and a partner ecosystem that provides thousands of pre-built extensions, including payment, shipping, tax and logistics.
Current Magento Commerce customers include brands like Canon, Helly Hansen, Paul Smith and Rosetta Stone, and some businesses are also Adobe customers, such as: Coca-Cola, Warner Music Group, Nestlé and Cathay Pacific.
“Adobe and Magento share a vision for the future of digital experiences that brings together Adobe’s strength in content and data with Magento’s open commerce innovation,” Magento CEO Mark Lavelle, said.
“We’re excited to join Adobe and believe this will be a great opportunity for our customers, partners and developer community.”
Each company will continue to operate independently until the transaction closes, which is expected to occur during the third quarter of Adobe’s 2018 fiscal year.
Upon close, Lavelle will continue to lead the Magento team as part of Adobe’s Digital Experience business, reporting to Rencher.
Updated: 22/5/18 16:35 AEST